Eni Exploration & Production in Kazakhstan September 2015 Eni milestones in Kazakhstan | 1992 | 2002 | 2012 Eni acquired the exclusive right to explore and produce Kalamkas field discovery National Company to negotiate the development hydrocarbons at the ”KazMunayGas” officially entered of Karachaganak field under Kashagan field | 2003 Karachaganak Joint Venture PSA regime Aktoty and Kairan fields’ discovery | 1999 The Karachaganak Phase 2 | 2014 | 1993 Karachaganak Phase 2 of development completed. North Caspian Operating The Kazakhstan Caspyi Shelf of development started President of Kazakhstan, Company N.V. appointed as Consortium Agreement Nursultan Nazarbayev, a single entity operator of the was signed, providing 11 blocks | 2000 NCSPSA activities inaugurated “First Oil” of Phase 2 in the North Caspian Sea with Kashagan field discovery 2 Eni and National Company acreage 5.500 km | 2004 “KazMunaiGas” signed strategic | 2001 Approval of the Kashagan agreement which defines | 1997 A subsidiary of Eni, Agip Development Plan and Budget principal terms of cooperation Both the Karachaganak Final Caspian Sea B.V., selected for the joint development of the Production Sharing Agreement as sole operator under | 2005 Isatay block located in the (FPSA) and the North Caspian NCSPSA. Such role was National Company Kazakhstan Sector of the Caspian Sea Production Sharing delegated to Agip “KazMunayGas” officially entered Sea and construction of a ship Agreement (NCSPSA) were signed Kazakhstan North Caspian the Kashagan Project building and ship repair yard Operating Company N.V. in Kuryk - Mangistau region | 1998 (Agip KCO) | 2009 Eni appointed co-operator with President of the Republic NCOC became operator under | 2015 BG for Karachaganak field of Kazakhstan, Nursultan the NCSPSA with Agip KCO “KazMunaiGas” and Eni finalized Offshore Kazakhstan Nazarbayev, opened maintaining the responsibility an agreement that defines the International Operating Company a new power station at the as designated agent for Kashagan commercial terms of the transfer N.V. (OKIOC) was established by Karachaganak Processing Phase 1 development until to Eni of 50% of the subsoil use International Consortium Complex (KPC) commercial production rights in the Isatay offshore block Eni projects Delivering Eni is one of the first international oil and gas companies on sustainable value to enter Kazakhstan at the beginning of the 90s. Over the years, Eni has maintained a strong presence in the Republic’s energy Eni considers sustainability a driver in the process of continuous industry, holding important stakes in two of the country’s largest improvement that guarantees results over time, while reinforcing projects: Eni is co-operator of the Karachaganak field and the its business performance and reputation. partner in the North Caspian Sea Production Sharing Agreement It is committed to taking action aimed at promoting respect (NCSPSA). for people and their rights, the environment and more generally, the broader interests of the communities in which it operates. It conducts its activities by taking full account of the interests of the Kashagan stakeholders, aware that dialogue and shared objectives are the way to create reciprocal value. Eni holds a 16,81% working interest in NCSPSA, which defines terms and conditions for the exploration and development of the Kashagan field discovered in the Northern section Environment of the contractual area in the year 2000 over an undeveloped area extending for 4,600 square kilometers. An innovative environmental monitoring system was implemented Due to the magnitude combined with technical and environmental in 2014. The project designed by Eni provides for the application complexities, the Kashagan field will be developed in phases of a mobile underwater vehicle (AUV) able to realize an environmental by North Caspian Operating Company New Venture (NCOC N.V.), monitoring and asset integrity at the production facility. the current sole operator of the PSA. During the year the integrated program for the management of biodiversity in the Ural Delta (Ural River Park Project - URPP) Other discoveries in the area include also the fields of Kalamkas, was completed which is actually the first private-public cooperation Aktoty and Kairan. project of this kind in the Caspian region. The program was launched by Eni under the sponsorship of the Environment and Water Resources Kazakh Authority and aimed to protect the environment Karachaganak and ecosystems in the Caspian area. In June 2014 the project received an official UNESCO designation Located onshore in West Kazakhstan, Karachaganak field to be included in the Man and Biosphere Program. was discovered in 1979 and is one of the world’s largest gas and condensate fields. Operations are conducted by the Karachaganak Petroleum Education Operating Consortium (KPO) with Eni and BG as co-operators. Eni has always demonstrated a great commitment towards In 2014 the production of the Karachaganak field averaged 242 the development of scientific and technological skills at the academic kbbl/d of liquids and 909 mmcf/d of natural gas. institutions of the countries in which it operates. In 2012 Eni and the “Nazarbayev University Research and Innovation System” (NURIS), with the support of Eni Corporate University, have stipulated an agreement for the establishment of an “Eni families have the opportunity to spend time in the pleasant Research Laboratory in Environmental Engineering”. The project environment of the Adriatic coast, participate in diverse health is promoting the development of the specific educational programs and entertainment events and take excursions to different Italian and scientific and technological skills, with the focus on solar energy cities and historical sites. engineering and material structure. Overall, about 2.000 children have visited the camp. Eni also contributes to the sustainable development of the regions Promotion of health through its partnership in Kashagan and Karachaganak projects. For Eni the promotion of wellbeing in local communities represents To date, the value of investments into social infrastructure projects an important tool for improving its effectiveness as a partner in Western Kazakhstan Oblast amounts to over US$ 275 million. in development. The construction of two Sports Centers in Mangistau A large number of new schools, kindergartens, hospitals, as well as region were sponsored by Eni. The first one in Kyzyltobe village was social and community-purpose buildings have been constructed completed in summer 2013, the second in Baskudyk village - in 2014. in recent years. Hundreds of kilometers of roads were also laid. Both sport complexes are suitable for boxing, basketball, volleyball, gymnastic and many other activities and will become the center The social infrastructure program in Atyrau and Mangistau Regions, of sport and cultural life in the area. where Kashagan operations are located, covers the construction of schools, kindergartens, sport facilities, and other infrastructure designed to benefit the community including the building of roads, Annual children reception in Italy the supply of electric power, gas and water. To date, investments in social projects have exceeded US$ 440 million. An established and traditional Eni program dedicated to young people is the annual reception for Kazakh children in the renowned Italian sea resort of Cesenatico, on the shore of Adriatic Sea. Every year since 1999, over 160 Kazakh children from disadvantaged Eni at a glance Eni is an integrated energy company employing more than 84,000 people in 83 Countries in the world. Eni engages in oil and natural gas exploration, field development and production, as well as in the supply, trading and shipping of natural gas, LNG, electricity, fuels and chemical products. Through refineries and chemical plants, Eni processes crude oil and other oil-based feedstock to produce fuels, lubricants and chemical products that are supplied to wholesalers or through retail networks or distributors. Furthermore, Eni operates in engineering, oilfield services and construction both offshore and onshore, focusing on the execution of technologically-advanced mega-projects mainly located in frontier areas. Eni’s strategies, resource allocation processes and conducting of day-by-day operations underpin the delivery of sustainable value to all of our stakeholders, respecting the Countries where the company operates and the people who work for and with Eni. Integrity in business management, support the Countries development, operational excellence D Island in conducting operations, innovation in developing competitive solutions, inclusiveness of Eni’s people and development of know-how and skills, integration of financial and non-financial issues in the company’s plans and processes drive Eni in creating sustainable value. These elements lead to wise investment choices, prevention of risks and the achievement of strategic objectives in the short, medium and long term. In 2015, Eni confirmed its presence in the Dow Jones Sustainability indices and in the FTSE4Good Sustainability index in the June half-yearly review. Main figures for 2014 • adjusted net profit: € 3,707 mln • cash flow from operations: € 15,110 mln • net borrowings: € 13,685 mln • dividends paid to shareholders: € 4,006 mln leverage: 0.22 visit eni.com • • hydrocarbon proved reserves: 6.60 bln boe • hydrocarbon production: 1,598 kboe/d • worldwide gas sales: 89.17 bcm • retail oil products sales in Europe: 9.21 mmtonnes • service stations in Europe: 6,220 Eni S.p.A. Agip Caspian Sea B.V. - Kazakhstan Branch Piazzale Enrico Mattei, 1 Agip Karachaganak B.V. - Kazakhstan Branch 00144 Rome - Italy Business Center Moskva Ph.: +39.06.598.21 18, Dostyk Street, Essyl District Fax: +39.06.598.221.41 010000, Astana, Republic of Kazakhstan eni.com Ph.: +7.7172.79.28.00; Fax: +7.7172.79.28.03 eni.com.